Engaged Business Turnaround (Pty) Ltd v Selpy 1363 (Pty) Ltd and Others (21879/2020) [2020] ZAGPPHC 611 (11 November 2020)

Engaged Business Turnaround (Pty) Ltd v Selpy 1363 (Pty) Ltd and Others (21879/2020) [2020] ZAGPPHC 611 (11 November 2020)

The court found that Zelpy Gold Mine (Pty) Ltd did not have a direct and substantial interest in the main application, as its mining right application pertained to a different magisterial district and did not constitute a granted right. The evidence showed that the business rescue plan was approved by all creditors...

Source-derived case information.

Citation
[2020] ZAGPPHC 611
Parties
Applicant: Engaged Business Turnaround (Pty) Ltd; Respondent: Zelpy 1363 (Pty) Ltd; Respondent: Jacobus Hendrikus Janse Van Rensburg NO; Respondent: Chavonnes Badenhorst St'Clair Cooper NO; Respondent: Shawn Glenville Roberts NO; Respondent: The Companies and Intellectual Property Commission; Respondent: First Respondent's Affected Persons; Respondent: The Minister of Mineral and Energy Resources; Respondent: The Regional Manager of Mineral Resources North West Region, Klerksdorp
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
11 November 2020
Case Number
21879/2020
Procedural Posture
Urgent Application / Application for Rescission of Final Liquidation Order and Intervention
Outcome
Application for intervention dismissed with costs; final liquidation order rescinded; applicant liable for possible fees or charges to joint liquidators; first respondent to pay costs of the application.
Judges
Selby Baqwa
Legal Topics
Business Rescue, Liquidation Rescission, Mining Rights, Intervention Application
Commercial and Corporate Civil Procedure Business Rescue Liquidation Rescission Mining Rights Intervention Application

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Parties

Engaged Business Turnaround (Pty) Ltd

Applicant

Zelpy 1363 (Pty) Ltd

Respondent

Jacobus Hendrikus Janse Van Rensburg NO

Respondent

Chavonnes Badenhorst St'Clair Cooper NO

Respondent

Shawn Glenville Roberts NO

Respondent

The Companies and Intellectual Property Commission

Respondent

First Respondent's Affected Persons

Respondent

The Minister of Mineral and Energy Resources

Respondent

The Regional Manager of Mineral Resources North West Region, Klerksdorp

Respondent

Procedural Posture

Urgent Application / Application for Rescission of Final Liquidation Order and Intervention

Legal Issues

  1. 1 Whether Zelpy Gold Mine (Pty) Ltd has a direct and substantial interest to intervene in the main application.
  2. 2 Whether the final liquidation order granted on 23 May 2017 should be rescinded under section 354(1) of the Companies Act, 61 of 1973.
  3. 3 Whether the mining right granted to the first respondent after liquidation remains valid.

Ratio Decidendi

The court found that Zelpy Gold Mine (Pty) Ltd did not have a direct and substantial interest in the main application, as its mining right application pertained to a different magisterial district and did not constitute a granted right. The evidence showed that the business rescue plan was approved by all creditors and majority shareholders, and provided for payment of dividends and funding of future mining operations. The court exercised its discretion under section 354(1) of the Companies Act to rescind the final liquidation order, finding that the interests of creditors, employees, and shareholders were adequately protected and that the mining right granted to the first respondent...

Court Disposition

Application for intervention dismissed with costs; final liquidation order rescinded; applicant liable for possible fees or charges to joint liquidators; first respondent to pay costs of the application.

Orders

  • The application for intervention by Zelpy Gold Mine (Pty) Ltd is dismissed with costs, including costs of two counsel.
  • The order issued on 23 May 2017 under case number 64898/2016 for the first respondent's final liquidation is rescinded in terms of section 354(1) of the Companies Act, 61 of 1973.